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Explore the world of retailing and wholesaling, from major types of marketing intermediaries to logistics planning. Discover trends, make marketing decisions, and delve into the intricacies of retail category management. This chapter also covers the functions and decisions involved in wholesaling, market logistics principles, and the marketing debate surrounding private labels.
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MARKETING MANAGEMENT12th edition 16 Managing Retailing, Wholesaling, and Logistics Kotler Keller
Chapter Questions • What major types of marketing intermediaries occupy this sector? • What marketing decisions do these marketing intermediaries make? • What are the major trends with marketing intermediaries?
Retailing Includes all the activities involved in selling goods or services directly to final consumers for personal, nonbusiness use.
Specialty store Department store Supermarket Convenience store Discount store Off-price retailer Superstore Catalog showroom Table 16.1 Major Retailer Types
Levels of Retail Service Self-service Self-selection Limited service Full service
Nonstore Retailing Direct selling Direct marketing Automatic vending Buying service
Major Types of Corporate Retail Organizations • Corporate chain store • Voluntary chain • Retailer cooperative • Consumer cooperative • Franchise organization • Merchandising conglomerate
Retailers’ Marketing Decisions Target market Product assortment Service/store atmosphere Price Communication Location
Retail Category Management Define the category Figure out its role Assess performance Set goals Choose the audience Figure out tactics Implement the plan
Retailer Services Mix Prepurchase services Postpurchase services Ancillary services
Location Decision • General business districts • Regional shopping centers • Community shopping centers • Strip malls • Location within a larger store
Indicators of Sales Effectiveness Number of people passing by % who enter store % of those who buy Average amount spent per sale
Trends in Retailing • New retail forms and combinations • Growth of intertype competition • Competition between store-based and non-store-based retailing • Growth of giant retailers • Decline of middle market retailers • Growing investment in technology • Global presence of major retailers
Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling Wholesaling Functions
Major Wholesaler Types Merchant Full-service Limited-service Brokers and agents Manufacturers Specialized
Wholesalers’ Marketing Decisions Target market Product assortment Price Promotion Place
Market Logistics Planning • Deciding on the company’s value proposition to its customers • Deciding on the best channel design and network strategy • Developing operational excellence • Implementing the solution
Market Logistics Decisions • How should orders be handled? • Where should stock be located? • How much stock should be held? • How should goods be shipped?
Transportation Factors • Speed • Frequency • Dependability • Capability • Availability • Traceability • Cost
Marketing Debate • Should national brand manufacturers also supply private label brands? Take a position: • Manufacturers should feel free to sell private labels as a source of revenue. 2. National manufacturers should never get involved with private labels.
Marketing Discussion • Think of your favorite stores. What do they do that encourages your loyalty? What do you like about the in-store experience?